All Forum Posts by: Jacob George Lada

@Craig Jeppesen I'm not sure on the length of lease so I would need to figure that out. I'm unsure if current tenants could afford the increase up to 1k a month. The owner said the current tenants have never missed a payment and have never caused any damage and says they're extremely good tenants.

@Craig Jeppesen Possibly couple factors. The property is 7.5 miles from the city. He does own the property out right. Majority of tenants are older on fixed income. Most tenants have been there years and never raised the rents. The owner built them 22 years ago. So as to why exactly I don't know but those are my thoughts. Also another bit of info, each unit could be sold as a condo as well. Not sure if I mentioned that.

@Craig Jeppesen If I were to pursue this further, what do you think ideal terms would be? The majority of duplexes in the area for sale currently are right around the 190-220,000 range. Majority being stand alone duplexes. One property has 2 duplexes and is for sale at 390,000. These separate properties are in traverse City Michigan and closely surrounding areas as well. From what I seen on Zillow, market place, asking co-workers, and Facebook, rent for 2 bed 1 bath is roughly 900-1100 a month. I understand what you said but for what he is asking seems to be with market value for the area. Thanks for responding

@Amad Osman thank you

@Amad Osman Did you do a commercial loan? Also do you mind sharing the details of your loan process

@Craig Jeppesen @Charles Kao @Tracey Wittke So to update anyone following. I have the actual numbers back. The seller wants to do 650,000 for 3 duplexes and extra lots/buildings, or just 600,000 for just the duplexes, 160,000 down payment, 3200 month payment for 5 years then balloon. 6% interest. Property tax is roughly 8000 and insurance is 2500 per year. Current rent is 4300 a month. He has extra lots for 4 more duplexes to be built on the property and a building currently present that can be built into a 1bed1bath easily. Appreciate any feedback on how to negotiate back to this. I plan to increase rent to at least 5000 gross per month. All units rented currently. The owner is in his 70s looking to retire

@Tracey Wittke thanks for the info. I sent you a message not sure if you got it? And yes I planned on increasing the rent. The initial conversation he was not firm on the 600 and not opposed to splitting up the duplexes. What do you think about buying 2 or 1?

@Tracey Wittke real estate no. But I'm currently working up here and have been coming up here for years. And it's maybe 10 miles from the bay on 72. No water involved but property sits on over 5 acres

@Charles Kao thank you for the advice. I'm meeting him Wednesday so I'll let everyone know how it goess

@Tracey Wittke and no realtor, private owned